Power Minerals Ltd (ASX:PNN) Identifies Exceptional Magnetic Rare Earth Elements at Morro Do Ferro Project
8 April 2026
Price Sensitive Announcement $
Highlights:
▪ The ongoing evaluation continues to uncover exceptional concentrations of Magnetic Rare Earth Elements at Morro do Ferro. The concentration of MREO will drive the economics because these 4 elements account for >80% of the market value for all REE.
▪ Recent drilling result from hole MFSR-47, observed an astounding concentration of 35,332 ppm (or 3.53%) magnetic rare earth oxides (MREO) over a 2-metre interval at
9-11m depth.
▪ MFSR-04 – 100.2m at 6,103ppm MREO from surface to EOH, including 21.35m at
14,438ppm (or 1.44%) MREO from 41m
▪ MFSR-10 – 100.44m at 9,485ppm (or 0.95%) MREO from surface to EOH, including 19.3m at 22,541ppm (or 2.25%) MREO from 25m
▪ MFSR-20 – 60.6m at 13,129ppm (or 1.31%) MREO from surface to EOH
▪ Situated on a top-sloping crest of a steep hill, with over 100 metres of topographic relief, not only enhances accessibility but also plays a crucial role in simplifying the design process, thereby improving efficiency and profitability, making this project a standout prospect in our portfolio
Overview:
Power Minerals Limited announced an exciting update regarding the high-grade Morro do Ferro Rare Earth Elements (REE) Project (the Project) in Minas Gerais state, Brazil as part of Power’s ongoing evaluation and due diligence for its potential acquisition of the Project.
Power recently entered a Binding Letter of Intent (LOI) with private exploration company Mineração Terras Raras (MTR) for the acquisition of Morro Do Ferro Project (ASX announcement 5 March 2026). The Project is a very high-grade REE asset, strategically located within the Poços de Calders Complex, acknowledged as one of the world’s leading REE precincts.
Power’s latest findings from its technical due diligence reinforce the remarkable presence of magnetic rare-earth elements intersected in drilling by previous project owners. These previous results were initially reported in Power’s ASX announcement of 5 March 2026.
The significant total rare earth oxides (TREO) values in the previous drilling are notable. However, the concentrations of the magnetic rare earth oxides (MREO) in these drilling results are even more significant. The MREO’s – Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy), and Terbium (Tb) – reported in drilling at the Project exceed TREO levels found in many other deposits.
These four REE’s are essential elements for magnet production and in future would be expected to drive the Project’s economics (subject to successful completion of due diligence and acquiring the Project) because the MREO elements account for >80% of the total REE market value. This breakthrough in understanding the Project’s geochemistry will enable Power to refine its development strategy for Morro do Ferro, further unlocking its potential.
Highlight MREO results reported from the previous drilling include hole MFSR-47, which returned an extremely high concentration of 35,332 ppm (or 3.53%) MREO over a 2-metre interval at 9-11m depth. This sample breakdown reveals critical components: 250 ppm Tb4O7, 835 ppm Dy2O3, 8,648 ppm (or 0.86%) Pr6O11, and 23,600 ppm (or 2.26%) Nd2O3.
In addition, drillhole MFSR-10 returned exceptionally high grades of Nd-Pr-Dy-Tb, with a substantial 100.44 metres yielding a weighted average of 9,485 ppm (0.95%) MREO from surface to the end-ofhole. These findings are compelling and indicative of the very strong MREO potential of the area.
Notably, the lowest recorded MREO result in this drillhole was 976 ppm—encouragingly higher than many TREO results seen in other rare earth deposits. Power’s ongoing assessment of available exploration data presents a promising outlook for the resource potential in this region, raising expectations for what further exploration might reveal.
Power is optimistic about the deposit’s expansion potential and believes it may remain open at depth, as well as along the northwest and southeast strike ends. The previous drilling has only partially constrained the known extent of the main deposit on the northeast and southwest sides, leaving ample opportunity for expansion.
Moreover, the possibility of discovering auxiliary deposits to the side of the main body adds an exciting layer to future exploration efforts. It is worth noting that the recent exploration focused solely on the historical area, which is characterised by a robust radiometric and magnetic signature, laying the groundwork for possible additional potential.
Company Notes:
Power Minerals Managing Director Mena Habib commented:
“The Morro do Ferro project represents a remarkable opportunity to expand our understanding of the resource capabilities within the Poços de Caldas Alkaline Complex, a renowned hotspot for rare earth elements in Brazil. With the exceptionally high concentrations identified at this site, Power Minerals stands poised to assert itself as a frontrunner in the rare-earth sector. Our enthusiasm for exploring the full potential of the Morro do Ferro Project is palpable, as we aim to lead in this rapidly evolving industry. Our recent due diligence visit to the Morro do Ferro site unveiled promising insights that enhance our confidence in the viability of this venture. The main deposit is strategically located along the crest of a steep hill, characterised by over 100 meters of topographic relief. This unique positioning not only provides significant geological advantages but also simplifies the proposed open-cut operation’s design, enhancing operational efficiency and driving down costs, aligning with our
commitment to sustainable mining practices.
As we advance into the next phase of this project, I am invigorated by the potential that Morro do Ferro holds. The combination of its advantageous topography and our strategic approach ensures that we are well-equipped to maximise the benefits of this endeavour. With careful planning and execution, I am confident that we will achieve exceptional results that will solidify Power Minerals’ position in the rare earth elements market. The Morro do Ferro Project not only offers significant resource potential but also exemplifies our dedication to sustainable and efficient mining. I look forward to collaborating with our team and stakeholders to bring this project to fruition, harnessing the opportunities that lie ahead while consistently pushing the boundaries of what’s possible in the rare-earth sector.”
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